Spot Bitcoin ETF Approvals Will Trigger $70 Billion In New Demand For Bitcoin And May Boost Its Price, Glassnode Says

The approval of spot Bitcoin ETFs (exchange-traded funds) will unlock about $70.5 billion in new demand for Bitcoin and may boost its price, says blockchain data firm Glassnode.

The new demand will come as investors reallocate funds from stocks, bonds and gold to BTC, Glassnode said in a Nov. 20 report.

Its projection is based on the assumption that 10% of money currently invested in major stock and bond ETFs would shift to a Bitcoin ETF, along with about 5% of assets under management from the gold market.

“Based on these assumptions, we estimate approximately $60.6 billion could flow into Bitcoin from the combined stock and bond ETFs, and about $9.9 billion from the gold market,” it said. “This significant infusion of new capital could have a considerable impact on Bitcoin’s market, potentially driving up its price as it gains broader acceptance and becomes integrated into more traditional investment portfolios.”

Research firm Bernstein says crypto fund managers are poised to see assets under management surge as much as 13-fold in the next five years to $650 billion as the approval of spot crypto ETFs fuels exponential growth.

It says the crypto fund management industry is on the cusp of a transformation from a “cottage industry’’ into a sector with $50 billion in revenues over the period.

A Dozen Spot Bitcoin ETF Applications Await Approval

There are about a dozen applications by fund managers to launch spot Bitcoin ETFs, including from industry titans including BlackRock and Fidelity. Bloomberg Intelligence ETF analysts say there is 90% chance that the Securities and Exchange Commission will approve some such products by early January.

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  • Why The Humbling Of Binance And CZ Is A Boon For BlackRock, Spot Bitcoin ETFs And New $BTCETF Token That’s Raised $1.34m.
  • Coinbase CEO Says Binance’s $4.3 Billion Settlement Deal With US Is An Opportunity For Crypto Industry To Open New Chapter.

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